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Once completed, this rulemaking will fulfill DOE’s statutory obligation under EPCA to either propose amended energy conservation standards for commercial water heaters, hot water supply boilers, and unfired hot water storage tanks or determine that the existing standards do not need to be amended. DOE must determine whether national standards more stringent than those that are currently in place would result in a significant additional amount of energy savings and whether such amended national standards would be technologically feasible and economically justified.

Statement of Need:

DOE is required under 42 U.S.C. 6313(a)(6)(C) to establish performance-based energy conservation standards for commercial water heaters.  This rulemaking is being conducted to satisfy that requirement by setting standards related to certain classes of commercial water heating equipment.

Summary of the Legal Basis:

This rulemaking is being conducted under DOE’s authority pursuant to 42 U.S.C. 6311, which establishes the agency’s legal authority over water heaters as one type of covered equipment that DOE may regulate, and 42 U.S.C. 6313(a)(6)(C), which requires DOE to conduct a rulemaking to establish performance-based energy conservation Standards for this equipment.

Alternatives:

Under EPCA, DOE shall either establish an amended uniform national standard for this equipment at the minimum level specified in the amended ASHRAE/IES Standard 90.1, unless the Secretary determines, by rule published in the Federal Register, and supported by clear and convincing evidence, that adoption of a uniform national standard more stringent than the amended ASHRAE/IES Standard 90.1 for this equipment would result in significant additional conservation of energy and is technologically feasible and economically justified (42 U.S.C. 6313(a)(6)(A)-(C)).

Anticipated Costs and Benefits:

DOE finds that the benefits to the Nation of the proposed energy conservation standards for commercial water heating equipment outweighs the burdens.  DOE estimates that energy savings for combined natural gas and electricity will be 1.8 quads over 30 years and the net benefit to the Nation will be between $2.26 billion and $6.75 billion.

Risks: